US Bancorp (NYSE: USB) on Wednesday reported third-quarter results that exceeded analysts’ expectations, driven by robust mortgage revenue, as well as strong loan and deposit growth. Total net revenue increased 4% to $5.92 billion, which was ahead of the Wall Street target of $5.82 billion.
Average total loans grew 4% year-over-year, while average total deposits were up 6% during the quarter.
Net income grew to $1.91 billion, or $1.15 per share, from $1.82 billion, or $1.06 per share reported a year ago. Analysts were looking at earnings of $1.11 per share.
NII edged up just 1%, even as noninterest income witnessed 8% growth.
USB shares rose 1.5% during pre-market trading hours on Wednesday. The stock has gained 15% since January this year.
CEO Andy Cecere said, “Mortgage revenue was particularly robust this quarter, reflecting both market conditions and the benefits of the investments we have made in our retail platform over the past several years.”
Revenue from Credit and debit card rose 6.4% to $366 million in Q3.